China Japan Photo: IC
According to the Japan External Trade Organization (JETRO) in Beijing, trade between China and Japan will get a huge boost from the Regional Comprehensive Economic Partnership (RCEP) thanks to favorable conditions in areas such as customs fees.
In a letter sent to the Global Times on Thursday, JETRO Beijing expressed enthusiasm for the benefits offered by RCEP, including the expansion of Japan’s exports to China, its largest trading partner in decades.
This trade agreement unites the three major economies of China, Japan and South Korea in the same economic system for the first time, and it is also the first direct economic free trade agreement between China and the Japan.
In terms of trade in industrial products between China and Japan, the number of products with zero tariffs on both sides will reach about 86 percent, JETRO Beijing said.
“For Japan, export duties on auto parts, steel products, chemicals, household appliances, fiber products and other categories will be significantly reduced, and many areas will benefit,” said government-related organization.
“Japanese exports of sake, shochu and other alcoholic beverages to China will also be duty-free,” JETRO Beijing said, saying they expect further export expansion in this area.
Since China and Japan established free trade relations, the ratio of zero tariffs is currently 25 percent and 57 percent respectively, according to data from China’s Ministry of Commerce.
But eventually, 86 percent of Japanese exports to China will be duty-free, while 88 percent of Chinese exports to Japan will receive duty-free treatment, according to media reports.
Besides tariffs, relevant general rules for customs clearance procedures and investments have also been formulated, which will greatly benefit Japan’s trade and economy as a whole, JETRO Beijing noted.
The GDP, total trade, and population of RCEP member countries is about one-third of the world’s total, making it a huge free trade agreement.
JETRO Beijing said trade with member countries accounts for 43 percent of Japan’s exports and 49 percent of its imports.
A previous report released by the Japanese government in March 2021 shows that the RCEP, which has been signed by 15 countries including China and Japan, will provide a significant boost to the Japanese economy and is expected to increase the country’s GDP by 2.7%.